Have you seen various Senior discounts at restaurants, theaters, ski resorts, and retailers? These discounts date back to the post WWII era when persons over 65 tended to have low to moderate incomes. This was before Medicare and as Social Security was just beginning to provide benefits for retirees.
Despite poverty among a small segment of the senior population today, the vast majority of 65+ Americans are wealthy by world and American standards,
Americans ages 70 and older made up 11% of the US population last quarter (2023) but held a record 30% of the country's wealth, according to data from the Federal Reserve. Increases in stocks and home values during the pandemic help to explain the increasing concentration of wealth for members of this demographic.
Across the nation, it is retirees who are fueling the housing markets as they sell paid off homes that appreciated during their long tenure to trade up to more luxurious homes. Sure, some seniors are down-sizing but with developers and builders profiting most from building larger, higher-end homes, many seniors are buying larger homes than where they raised their families.Very few "starter" homes are being built because they are like compact vehicles are to car companies... not profitable.
The economics of families have shifted over the decades so that people raising children should be getting the discounts, not seniors.
This paper gives an excellent perspective, however I'm interested about the economic consequences of wealth concentration. What effect does it have on economic growth and opportunity for medium and lower-income people? Any thoughts on this would be greatly appreciated.
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